COMMENTARY: HOW DODD-FRANK DOUBLES DOWN ON "TOO BIG TO FAIL"
When Sen. Elizabeth Warren (D-Mass.) asked a bipartisan panel of four economists at a hearing in January whether the Dodd-Frank Act would end the problem of too-big-to-fail banks, every one answered no for good reason, according to a commentary in today's Wall Street Journal. Dodd-Frank's approach to regulating bank risk has two major flaws, according to the commentary: First, its standards and rules require regulatory enforcement instead of giving bankers strong incentives to maintain safety and soundness of their own institutions. Second, the regulatory framework attempts to prevent any individual bank from failing, instead of preventing the collapse of the payments and credit systems. The principal danger to the banking system arises, according to the commentary, when fear and uncertainty about the value of bank assets induces the widespread refusal by banks to accept each other's short-term debts. Such refusals can lead to a collapse of the interbank payments system, a dramatic contraction of bank credit, and a general loss in confidence by consumers and businesses -- all of which can have dire economic consequences. The proper goal is thus to make the banking system sufficiently resilient so that no single failure can result in a general collapse. Read the full commentary. (Subscription required.)
REALTYTRAC: U.S. FORECLOSURE FILINGS DROP 18 PERCENT
Market researcher RealtyTrac reported today that the number of U.S. properties with foreclosure filings declined 18 percent in January from a year earlier, with some notable drops in the Phoenix and Detroit metro areas, MarketWatch.com reported today. There were 124,419 U.S. properties with default notices, scheduled auctions and bank repossessions in January, an 8 percent increase from the prior month, RealtyTrac reported. About one in every 1,058 U.S. housing units had a foreclosure filing last month. Read more.
CREDIT, DEBIT CARDS WITH CHIPS REMAIN VULNERABLE TO FRAUD
Security experts have pointed out that chip cards are susceptible to online fraud, but the high-tech plastic is suppose to be all but impossible to counterfeit, the Washington Post reported today. EMV-enabled cards, which are widely used in Europe, communicate data to payment terminals or ATMs that are supposed to generate random numbers to securely authenticate transactions. But researchers from the University of Cambridge say they discovered a flaw in the system in 2012. They noticed that some payment terminals in the United Kingdom produced numbers with predictable patterns that were easily exploited by thieves. Once hackers could predict the "random" numbers, they could record the data and play back the information later -- tactics known as "pre-play" attacks. Read more.
SENATOR RICHARD DURBIN DISCUSSES THE "STUDENT LOAN BORROWER BILL OF RIGHTS" ON LATEST ABI PODCAST
Sen. Dick Durbin (D-Ill.), the Assistant Majority Leader for the Senate and sponsor of S. 1803, the "Student Loan Borrower Bill of Rights," joined ABI Resident Scholar Prof. Charles Tabb for a discussion on key issues surrounding student debt. In addition to an overview and insight into his legislation, Durbin provides his thoughts on the risks to the U.S. if action is not taken to address the student debt crisis. Click here to listen to the podcast.
PUBLIC COMMENT PERIOD ENDS FRIDAY FOR PROPOSED AMENDMENTS TO THE FEDERAL RULES OF BANKRUPTCY PROCEDURE
The Judicial Conference Advisory Committee on Bankruptcy Rules has proposed amendments to the Federal Rules of Bankruptcy Procedure and Official Forms, and requested that the proposals be circulated to the bench, bar, and public for comment. On August 15, 2013, the public comment period opened for the proposed amendments to Bankruptcy Rules 2002, 3002, 3007, 3012, 3015, 4003, 5005, 5009, 7001, 9006, and 9009 and Official Forms 17A, 17B, 17C, 22A-1, 22A-1Supp, 22A-2, 22B, 22C-1, 22C-2, 101, 101A, 101B, 104, 105, 106Sum, 106A/B, 106C, 106D, 106E/F, 106G, 106H, 106Dec, 107, 112, 113, 119, 121, 318, 423 and 427. The public comment period closes on Friday. For more information, please click here.
To access the online comment site for the proposed amendments, please click here.
ABI MEMBERS INVITED TO ATTEND THE 10TH ANNUAL WHARTON RESTRUCTURING AND DISTRESSED INVESTING CONFERENCE ON FEB. 21
ABI members are invited to attend the 10th Annual Wharton Restructuring and Distressed Investing Conference taking place on Feb. 21 at the Union League of Philadelphia. The theme for this year's conference is "Then & Now: Lessons of the Market Cycle," and the program will offer a unique opportunity to hear from a distinguished gathering of keynote speakers and panelists in their discussion of the current economic climate and issues of debt, investing, and restructuring across the globe. To see the keynote speakers for the conference and to register, please click here.
DUBERSTEIN GALA AWARDS DINNER ON MARCH 3 TO PAY TRIBUTE TO BANKRUPTCY JUDGE BURTON LIFLAND AND CHIEF BANKRUPTCY CLERK JOSEPH HURLEY
The Gala Awards Dinner at this year's 22nd Annual Duberstein Bankruptcy Moot Court Competition on March 3 will feature a special tribute to Bankruptcy Judge Burton J. Lifland of the U.S. Bankruptcy Court for the Southern District of New York and Joseph P. Hurley, Chief Bankruptcy Clerk (retired) of the U.S. Bankruptcy Court for the Eastern District of New York. To purchase tickets for the gala or to find out more information, please visit http://www.dubersteingala.com.
PURCHASE EITHER THE CONSUMER OR BUSINESS EDITION OF THE BEST OF ABI 2013 AND RECEIVE A FREE ADDITIONAL TITLE!
To make room for new books in 2014, ABI is having a special Bookstore clearance sale. Now, when you buy either Best of ABI 2013: The Year in Business Bankruptcy or The Year in Consumer Bankruptcy, you can choose a free book from a select list of ABI publications. You'll be able to make your selection when you click "Buy Now" on either edition of the Best of ABI 2013. To purchase the Best of ABI 2013: The Year in Business Bankruptcy, please click here.
Make your selection when you click "Buy Now" on either edition of the Best of ABI 2013. To purchase the Best of ABI 2013: The Year in Consumer Bankruptcy, please click here.
MARCH 4 IS THE DEADLINE FOR SUBMISSIONS FOR ABI’S SIXTH ANNUAL LAW STUDENT WRITING COMPETITION!
Law school students are invited to submit a paper between now and March 4, 2014 for ABI's Sixth Annual Bankruptcy Law Student Writing Competition. ABI will extend a complimentary one-year membership to all students who participate in this year's competition. Eligible submissions should focus on current issues regarding bankruptcy jurisdiction, bankruptcy litigation, or evidence issues in bankruptcy cases or proceedings. The first-place winner, sponsored by Invotex Group, Inc., will receive a cash prize of $2,000 and publication of his or her paper in the ABI Journal. The second-place winner, sponsored by Jenner & Block LLP, will receive a cash prize of $1,250 and publication of his or her paper in an ABI committee newsletter. The third-place winner, sponsored by Thompson & Knight LLP, will receive a cash prize of $750 plus publication of his or her paper in an ABI committee newsletter. For competition participation and submission guidelines, please visit http://papers.abi.org.
NEW ABILIVE WEBINAR ON MARCH 20 EXAMINES HOW TO DRAFT LOAN WORKOUT AGREEMENTS
The next abiLIVE webinar will take place on March 20 from 1-2:30 p.m. ET and will examine how to draft loan workout agreements. Learn the purpose and legal underpinnings of the various component parts of frequently used workout documents such as forbearance agreements, intercreditor agreements and restructuring/override agreements. The panel will focus on real-world examples of good and bad provisions of workout documents and will provide drafting tips. Group discounts available! Click here to register.
LOOKING TO SEE WHAT IS IN STORE FOR ABI'S 32ND ANNUAL SPRING MEETING? WATCH HERE
Watch here to find out more about what is on tap for ABI’s 32nd Annual Spring Meeting at the JW Marriott in downtown Washington, D.C. The conference, taking place April 24-27, 2014, features a roster of the best national speakers, while the depth and scope of topics offer something for everyone. Specifically, four concurrent workshops will cover various “tracks,” including programs for attorneys in commercial cases, a track for restructuring professionals, a track of professional development programming and a track dealing solely with consumer issues. The Annual Spring Meeting offers 18.25/22 hours of CLE/CPE credit, along with ethics credit totaling 3.25/4 hours. Detroit Emergency Manager Kevyn Orr will keynote the Friday luncheon at the conference. In addition, committee sessions will drill down on topics covered in the larger sessions to provide you with the most practical and varied CLE/CPE experience ever. Also featured will be a special half-day optional event sponsored by ABI and the FCBA titled "The Intersection of the FCC and Bankruptcy Law." Register today!
NEW CASE SUMMARY ON VOLO: BONNETT V. GILLESPIE (IN RE IRISH PUB-ARROWHEAD LLC; 9TH CIR.)
Summarized by Geoffrey Miller of the U.S. Bankruptcy Court for the District of Arizona
The Ninth Circuit BAP affirmed the bankruptcy court on appeal, explaining that the appeal was not moot because the subject sale transaction was not so complex that it would be difficult to unwind as the proceeds of the subject sale remained in the trustee's possession and would not be distributed pending the outcome of the appeal.
There are more than 1,200 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.
NEW ON ABI'S BANKRUPTCY BLOG EXCHANGE: WHEN BANKRUPTCY CAN HELP YOU DEAL WITH MEDICAL DEBT
The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A recent blog post examines ways that bankruptcy can help with consumers who are struggling under the burden of expensive medical bills.
Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.
ABI Quick Poll
The Bankruptcy Code permits a debtor to artificially impair a class for cramdown purposes.
Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.
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